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Background image for lists?

I'm having a little trouble with aligning a background image to my nav list <li>items.

The image repeats along all of the page (which is an easy fix) but the problem I'm having a lot more trouble with is having each <li> with its own background image. Also, for some reason, the background image is resizing itself when displayed.

The background image is not resizing itself, just the <li> is only the height of the text. As the links will contain <a> elements, display the <a>s as blocks, give them a size to suit the graphic, and apply the graphics to the <a> instead of the <li> (this will allow you to change the graphic on the hover for a rollover if needed). The <li>s can be floated left, and the <ul> styled to eliminate the div (and multiple id). Try html: